Concept introduction The consolidated balance sheet and the worksheets are the computed tools that are used to calculated the retained earnings and the dividend produced by the subsidiaries towards its parent company. To prepare: a journal entry by cost method for the investment in snoopy company in the year 2009 .

Question

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Answer 1

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 2, Problem 2.28BP

a.

To determine

Concept introduction

The consolidated balance sheet and the worksheets are the computed tools that are used to calculated the retained earnings and the dividend produced by the subsidiaries towards its parent company.

To prepare: a journal entry by cost method for the investment in snoopy company in the year 2009 .

a.

Expert Solution

Answer to Problem 2.28BP

The journal entry so passed gives a debit of investment and credit the cash with the same amount.

Explanation of Solution

Costmethod entry on books	Debit	Credit
Cash	30,000
Dividend income		30,000
Record P co. 100% share of the snoopy co. 2009 income

b.

To determine

Concept introduction

The consolidated balance sheet and the worksheets are the computed tools that are used to calculated the retained earnings and the dividend produced by the subsidiaries towards its parent company.

To prepare: the consolidate worksheet for the final values

b.

Expert Solution

Answer to Problem 2.28BP

The consolidate worksheet is prepared and discussed.

Explanation of Solution

Book value calculation
	Total book value	=	Common stock	+	Retained earnings
Original book value	300,000		200,000		100,000

Income statement	P	S	Dr.	Cr.	consolidated
Sales	850,000	300,000			1,150,000
Less Cogs	(270,000)	(150,000)			(420,000)
Depreciation Exp	(50,000)	(10,000)			(60,000)
Sel. Exp	(230,000)	(60,000)			(290,000)
Dividend Income	30,000		30,000
Net income	330,000	80,000	30,000		380,000

Statement of Retain Earning	P	S	Dr.	Cr.	Consolidated
Opening balance	470,000	155,000	100,000		525,000
Net income	330,000	80,000	30,000		380,000
Less dividend declared	(225,000)	(30,000)		30,000	(225,000)
End balance	575,000	205,000	130,000	30,000	680,000

Income statement	Peanut co	Snoopy co	Eliminated DR	Eliminated CR	consolidated
Cash	230,000	75,000			305,000
Accounts received	190,000	80,000			270,000
Inventory	180,000	100,000			280,000
Investment in snoopy co	300,000			300,000	0
Land	200,000	100,000			300,000
Building and equipment	700,000	200,000		10,000	890,000
Less accumulated depreciation	500,000	30,000	10,000		520,000
Total assets	1300,000	525,000	10,000	310,000	1,525,000
Account payable	75,000	35,000			110,000
Bonds	150,000	85,000			235,000
Common stocks	500,000	200,000	200,000		500,000
Retained earnings	575,000	205,000	130,000	30,000	680,000
Total liabilities	1300,000	625,000	330,000	30,000	1,525,000

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I need to prepare Journal Entries, then updated T-accounts

i need the answer quickly

assuming the beginning of the year (20X3) balance in the Investment in A account is $716,000 complete the consolidated worksheet below. To ald in this, Information from Problem 4 is repeated below. Monroe Company purchased 80% of Adams Company on January 1, 20X1. The purchase price paid was $600,000. On that day, the book value of Adams was $500,000. Excess of cost over book value is due to goodwill. Included in Adams's income are intercompany sales to Monroe of $40,000 with a cost to Adams of $25,000. 30% of this inventory is on hand in the Monroe inventory at December 31, 20X3. In addition, inventory sold at a profit of $5,000 was in the inventory of Monroe at December 31, 20X2. Below are the balances of accounts of Monroe and Adams at December 31, 20x3. Consolidation Entries Consolidated Bal. Monroe Adams Dr. Cr. Sales $50,000 $250,000 CGS & Expenses $30,000 $150,000 Income from S. Income $100,000 NCI Controlling Interest Retained Earnings Jan 1, 10 $700,000 $190,000 Dividends…

Answer 2

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 2, Problem 2.28BP

a.

To determine

Concept introduction

The consolidated balance sheet and the worksheets are the computed tools that are used to calculated the retained earnings and the dividend produced by the subsidiaries towards its parent company.

To prepare: a journal entry by cost method for the investment in snoopy company in the year 2009 .

a.

Expert Solution

Answer to Problem 2.28BP

The journal entry so passed gives a debit of investment and credit the cash with the same amount.

Explanation of Solution

Costmethod entry on books	Debit	Credit
Cash	30,000
Dividend income		30,000
Record P co. 100% share of the snoopy co. 2009 income

b.

To determine

Concept introduction

The consolidated balance sheet and the worksheets are the computed tools that are used to calculated the retained earnings and the dividend produced by the subsidiaries towards its parent company.

To prepare: the consolidate worksheet for the final values

b.

Expert Solution

Answer to Problem 2.28BP

The consolidate worksheet is prepared and discussed.

Explanation of Solution

Book value calculation
	Total book value	=	Common stock	+	Retained earnings
Original book value	300,000		200,000		100,000

Income statement	P	S	Dr.	Cr.	consolidated
Sales	850,000	300,000			1,150,000
Less Cogs	(270,000)	(150,000)			(420,000)
Depreciation Exp	(50,000)	(10,000)			(60,000)
Sel. Exp	(230,000)	(60,000)			(290,000)
Dividend Income	30,000		30,000
Net income	330,000	80,000	30,000		380,000

Statement of Retain Earning	P	S	Dr.	Cr.	Consolidated
Opening balance	470,000	155,000	100,000		525,000
Net income	330,000	80,000	30,000		380,000
Less dividend declared	(225,000)	(30,000)		30,000	(225,000)
End balance	575,000	205,000	130,000	30,000	680,000

Income statement	Peanut co	Snoopy co	Eliminated DR	Eliminated CR	consolidated
Cash	230,000	75,000			305,000
Accounts received	190,000	80,000			270,000
Inventory	180,000	100,000			280,000
Investment in snoopy co	300,000			300,000	0
Land	200,000	100,000			300,000
Building and equipment	700,000	200,000		10,000	890,000
Less accumulated depreciation	500,000	30,000	10,000		520,000
Total assets	1300,000	525,000	10,000	310,000	1,525,000
Account payable	75,000	35,000			110,000
Bonds	150,000	85,000			235,000
Common stocks	500,000	200,000	200,000		500,000
Retained earnings	575,000	205,000	130,000	30,000	680,000
Total liabilities	1300,000	625,000	330,000	30,000	1,525,000

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Answer 3

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 2, Problem 2.28BP

a.

To determine

Concept introduction

The consolidated balance sheet and the worksheets are the computed tools that are used to calculated the retained earnings and the dividend produced by the subsidiaries towards its parent company.

To prepare: a journal entry by cost method for the investment in snoopy company in the year 2009 .

a.

Expert Solution

Answer to Problem 2.28BP

The journal entry so passed gives a debit of investment and credit the cash with the same amount.

Explanation of Solution

Costmethod entry on books	Debit	Credit
Cash	30,000
Dividend income		30,000
Record P co. 100% share of the snoopy co. 2009 income

b.

To determine

Concept introduction

The consolidated balance sheet and the worksheets are the computed tools that are used to calculated the retained earnings and the dividend produced by the subsidiaries towards its parent company.

To prepare: the consolidate worksheet for the final values

b.

Expert Solution

Answer to Problem 2.28BP

The consolidate worksheet is prepared and discussed.

Explanation of Solution

Book value calculation
	Total book value	=	Common stock	+	Retained earnings
Original book value	300,000		200,000		100,000

Income statement	P	S	Dr.	Cr.	consolidated
Sales	850,000	300,000			1,150,000
Less Cogs	(270,000)	(150,000)			(420,000)
Depreciation Exp	(50,000)	(10,000)			(60,000)
Sel. Exp	(230,000)	(60,000)			(290,000)
Dividend Income	30,000		30,000
Net income	330,000	80,000	30,000		380,000

Statement of Retain Earning	P	S	Dr.	Cr.	Consolidated
Opening balance	470,000	155,000	100,000		525,000
Net income	330,000	80,000	30,000		380,000
Less dividend declared	(225,000)	(30,000)		30,000	(225,000)
End balance	575,000	205,000	130,000	30,000	680,000

Income statement	Peanut co	Snoopy co	Eliminated DR	Eliminated CR	consolidated
Cash	230,000	75,000			305,000
Accounts received	190,000	80,000			270,000
Inventory	180,000	100,000			280,000
Investment in snoopy co	300,000			300,000	0
Land	200,000	100,000			300,000
Building and equipment	700,000	200,000		10,000	890,000
Less accumulated depreciation	500,000	30,000	10,000		520,000
Total assets	1300,000	525,000	10,000	310,000	1,525,000
Account payable	75,000	35,000			110,000
Bonds	150,000	85,000			235,000
Common stocks	500,000	200,000	200,000		500,000
Retained earnings	575,000	205,000	130,000	30,000	680,000
Total liabilities	1300,000	625,000	330,000	30,000	1,525,000

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Answer 4

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 2, Problem 2.28BP

a.

To determine

Concept introduction

The consolidated balance sheet and the worksheets are the computed tools that are used to calculated the retained earnings and the dividend produced by the subsidiaries towards its parent company.

To prepare: a journal entry by cost method for the investment in snoopy company in the year 2009 .

a.

Expert Solution

Answer to Problem 2.28BP

The journal entry so passed gives a debit of investment and credit the cash with the same amount.

Explanation of Solution

Costmethod entry on books	Debit	Credit
Cash	30,000
Dividend income		30,000
Record P co. 100% share of the snoopy co. 2009 income

b.

To determine

Concept introduction

The consolidated balance sheet and the worksheets are the computed tools that are used to calculated the retained earnings and the dividend produced by the subsidiaries towards its parent company.

To prepare: the consolidate worksheet for the final values

b.

Expert Solution

Answer to Problem 2.28BP

The consolidate worksheet is prepared and discussed.

Explanation of Solution

Book value calculation
	Total book value	=	Common stock	+	Retained earnings
Original book value	300,000		200,000		100,000

Income statement	P	S	Dr.	Cr.	consolidated
Sales	850,000	300,000			1,150,000
Less Cogs	(270,000)	(150,000)			(420,000)
Depreciation Exp	(50,000)	(10,000)			(60,000)
Sel. Exp	(230,000)	(60,000)			(290,000)
Dividend Income	30,000		30,000
Net income	330,000	80,000	30,000		380,000

Statement of Retain Earning	P	S	Dr.	Cr.	Consolidated
Opening balance	470,000	155,000	100,000		525,000
Net income	330,000	80,000	30,000		380,000
Less dividend declared	(225,000)	(30,000)		30,000	(225,000)
End balance	575,000	205,000	130,000	30,000	680,000

Income statement	Peanut co	Snoopy co	Eliminated DR	Eliminated CR	consolidated
Cash	230,000	75,000			305,000
Accounts received	190,000	80,000			270,000
Inventory	180,000	100,000			280,000
Investment in snoopy co	300,000			300,000	0
Land	200,000	100,000			300,000
Building and equipment	700,000	200,000		10,000	890,000
Less accumulated depreciation	500,000	30,000	10,000		520,000
Total assets	1300,000	525,000	10,000	310,000	1,525,000
Account payable	75,000	35,000			110,000
Bonds	150,000	85,000			235,000
Common stocks	500,000	200,000	200,000		500,000
Retained earnings	575,000	205,000	130,000	30,000	680,000
Total liabilities	1300,000	625,000	330,000	30,000	1,525,000

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Answer 5

Chapter 2, Problem 2.28BP

a.

To determine

Concept introduction

The consolidated balance sheet and the worksheets are the computed tools that are used to calculated the retained earnings and the dividend produced by the subsidiaries towards its parent company.

To prepare: a journal entry by cost method for the investment in snoopy company in the year 2009 .

a.

Expert Solution

Answer to Problem 2.28BP

The journal entry so passed gives a debit of investment and credit the cash with the same amount.

Explanation of Solution

Costmethod entry on books	Debit	Credit
Cash	30,000
Dividend income		30,000
Record P co. 100% share of the snoopy co. 2009 income

b.

To determine

Concept introduction

The consolidated balance sheet and the worksheets are the computed tools that are used to calculated the retained earnings and the dividend produced by the subsidiaries towards its parent company.

To prepare: the consolidate worksheet for the final values

b.

Expert Solution

Answer to Problem 2.28BP

The consolidate worksheet is prepared and discussed.

Explanation of Solution

Book value calculation
	Total book value	=	Common stock	+	Retained earnings
Original book value	300,000		200,000		100,000

Income statement	P	S	Dr.	Cr.	consolidated
Sales	850,000	300,000			1,150,000
Less Cogs	(270,000)	(150,000)			(420,000)
Depreciation Exp	(50,000)	(10,000)			(60,000)
Sel. Exp	(230,000)	(60,000)			(290,000)
Dividend Income	30,000		30,000
Net income	330,000	80,000	30,000		380,000

Statement of Retain Earning	P	S	Dr.	Cr.	Consolidated
Opening balance	470,000	155,000	100,000		525,000
Net income	330,000	80,000	30,000		380,000
Less dividend declared	(225,000)	(30,000)		30,000	(225,000)
End balance	575,000	205,000	130,000	30,000	680,000

Income statement	Peanut co	Snoopy co	Eliminated DR	Eliminated CR	consolidated
Cash	230,000	75,000			305,000
Accounts received	190,000	80,000			270,000
Inventory	180,000	100,000			280,000
Investment in snoopy co	300,000			300,000	0
Land	200,000	100,000			300,000
Building and equipment	700,000	200,000		10,000	890,000
Less accumulated depreciation	500,000	30,000	10,000		520,000
Total assets	1300,000	525,000	10,000	310,000	1,525,000
Account payable	75,000	35,000			110,000
Bonds	150,000	85,000			235,000
Common stocks	500,000	200,000	200,000		500,000
Retained earnings	575,000	205,000	130,000	30,000	680,000
Total liabilities	1300,000	625,000	330,000	30,000	1,525,000

Answer 6

Chapter 2, Problem 2.28BP

a.

To determine

Concept introduction

The consolidated balance sheet and the worksheets are the computed tools that are used to calculated the retained earnings and the dividend produced by the subsidiaries towards its parent company.

To prepare: a journal entry by cost method for the investment in snoopy company in the year 2009 .

a.

Expert Solution

Answer to Problem 2.28BP

The journal entry so passed gives a debit of investment and credit the cash with the same amount.

Explanation of Solution

Costmethod entry on books	Debit	Credit
Cash	30,000
Dividend income		30,000
Record P co. 100% share of the snoopy co. 2009 income

Answer 7

Chapter 2, Problem 2.28BP

a.

To determine

Concept introduction

The consolidated balance sheet and the worksheets are the computed tools that are used to calculated the retained earnings and the dividend produced by the subsidiaries towards its parent company.

To prepare: a journal entry by cost method for the investment in snoopy company in the year 2009 .

Answer 8

a.

Expert Solution

Answer to Problem 2.28BP

The journal entry so passed gives a debit of investment and credit the cash with the same amount.

Answer 9

a.

Expert Solution

Answer 10

a.

Expert Solution

Answer 11

Expert Solution

Answer 12

Explanation of Solution

Costmethod entry on books	Debit	Credit
Cash	30,000
Dividend income		30,000
Record P co. 100% share of the snoopy co. 2009 income

Answer 13

b.

To determine

Concept introduction

The consolidated balance sheet and the worksheets are the computed tools that are used to calculated the retained earnings and the dividend produced by the subsidiaries towards its parent company.

To prepare: the consolidate worksheet for the final values

b.

Expert Solution

Answer to Problem 2.28BP

The consolidate worksheet is prepared and discussed.

Explanation of Solution

Book value calculation
	Total book value	=	Common stock	+	Retained earnings
Original book value	300,000		200,000		100,000

Income statement	P	S	Dr.	Cr.	consolidated
Sales	850,000	300,000			1,150,000
Less Cogs	(270,000)	(150,000)			(420,000)
Depreciation Exp	(50,000)	(10,000)			(60,000)
Sel. Exp	(230,000)	(60,000)			(290,000)
Dividend Income	30,000		30,000
Net income	330,000	80,000	30,000		380,000

Statement of Retain Earning	P	S	Dr.	Cr.	Consolidated
Opening balance	470,000	155,000	100,000		525,000
Net income	330,000	80,000	30,000		380,000
Less dividend declared	(225,000)	(30,000)		30,000	(225,000)
End balance	575,000	205,000	130,000	30,000	680,000

Income statement	Peanut co	Snoopy co	Eliminated DR	Eliminated CR	consolidated
Cash	230,000	75,000			305,000
Accounts received	190,000	80,000			270,000
Inventory	180,000	100,000			280,000
Investment in snoopy co	300,000			300,000	0
Land	200,000	100,000			300,000
Building and equipment	700,000	200,000		10,000	890,000
Less accumulated depreciation	500,000	30,000	10,000		520,000
Total assets	1300,000	525,000	10,000	310,000	1,525,000
Account payable	75,000	35,000			110,000
Bonds	150,000	85,000			235,000
Common stocks	500,000	200,000	200,000		500,000
Retained earnings	575,000	205,000	130,000	30,000	680,000
Total liabilities	1300,000	625,000	330,000	30,000	1,525,000

Answer 14

b.

To determine

Concept introduction

The consolidated balance sheet and the worksheets are the computed tools that are used to calculated the retained earnings and the dividend produced by the subsidiaries towards its parent company.

To prepare: the consolidate worksheet for the final values

Answer 15

b.

Expert Solution

Answer to Problem 2.28BP

The consolidate worksheet is prepared and discussed.

Answer 16

b.

Expert Solution

Answer 17

b.

Expert Solution

Answer 18

Expert Solution

Answer 19

Explanation of Solution

Book value calculation
	Total book value	=	Common stock	+	Retained earnings
Original book value	300,000		200,000		100,000

Income statement	P	S	Dr.	Cr.	consolidated
Sales	850,000	300,000			1,150,000
Less Cogs	(270,000)	(150,000)			(420,000)
Depreciation Exp	(50,000)	(10,000)			(60,000)
Sel. Exp	(230,000)	(60,000)			(290,000)
Dividend Income	30,000		30,000
Net income	330,000	80,000	30,000		380,000

Statement of Retain Earning	P	S	Dr.	Cr.	Consolidated
Opening balance	470,000	155,000	100,000		525,000
Net income	330,000	80,000	30,000		380,000
Less dividend declared	(225,000)	(30,000)		30,000	(225,000)
End balance	575,000	205,000	130,000	30,000	680,000

Income statement	Peanut co	Snoopy co	Eliminated DR	Eliminated CR	consolidated
Cash	230,000	75,000			305,000
Accounts received	190,000	80,000			270,000
Inventory	180,000	100,000			280,000
Investment in snoopy co	300,000			300,000	0
Land	200,000	100,000			300,000
Building and equipment	700,000	200,000		10,000	890,000
Less accumulated depreciation	500,000	30,000	10,000		520,000
Total assets	1300,000	525,000	10,000	310,000	1,525,000
Account payable	75,000	35,000			110,000
Bonds	150,000	85,000			235,000
Common stocks	500,000	200,000	200,000		500,000
Retained earnings	575,000	205,000	130,000	30,000	680,000
Total liabilities	1300,000	625,000	330,000	30,000	1,525,000

Answer 20

Ch. 2 - What types of investments in common stock normally...Ch. 2 - Prob. 2.2AQ Ch. 2 - When is equity method reporting considered...Ch. 2 - Prob. 2.4Q Ch. 2 - Prob. 2.5Q Ch. 2 - Prob. 2.6Q Ch. 2 - Prob. 2.7Q Ch. 2 - Prob. 2.8Q Ch. 2 - How does carrying securities at fair value...Ch. 2 - How does the fully adjusted equity method differ...

Solution Summary: The author explains how the consolidated balance sheet and worksheets are used to calculate the retained earnings and the dividend produced by the subsidiaries towards its parent company.

Concept explainers

Videos

Answer to Problem 2.28BP

Explanation of Solution

Concept introduction

The consolidated balance sheet and the worksheets are the computed tools that are used to calculated the retained earnings and the dividend produced by the subsidiaries towards its parent company.

To prepare: the consolidate worksheet for the final values

Answer to Problem 2.28BP

Explanation of Solution

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Chapter 2 Solutions

Solution Summary: The author explains how the consolidated balance sheet and worksheets are used to calculate the retained earnings and the dividend produced by the subsidiaries towards its parent company.

Concept explainers

Videos

Answer to Problem 2.28BP

Explanation of Solution

Concept introduction The consolidated balance sheet and the worksheets are the computed tools that are used to calculated the retained earnings and the dividend produced by the subsidiaries towards its parent company. To prepare: the consolidate worksheet for the final values

Answer to Problem 2.28BP

Explanation of Solution

Want to see more full solutions like this?

Chapter 2 Solutions

Concept introduction

The consolidated balance sheet and the worksheets are the computed tools that are used to calculated the retained earnings and the dividend produced by the subsidiaries towards its parent company.

To prepare: the consolidate worksheet for the final values